1. Enterprise Resource
Planning
(ERP)
SOSE! SITE Open Source ERP
http://www.open-source-erp-site.com
http://www.open-source-erp-site.com
2. What is ERP?
ERP is a solution, which
facilitates company-wide integrated
information systems, covering all
functional areas
performs core Corporate activities and
increases customer service augmenting
Corporate Image
http://www.open-source-erp-site.com
3. The Current Scenario
Islands of Information
Difficult to get timely & accurate information
Heterogeneous Hardware & Software
platforms & practices
Poor connectivity between different
organizational locations
Sticking with obsolete technology
Resist to change
Lack of proven man-power to develop
integrated software
http://www.open-source-erp-site.com
5. Why ERP?
For Management – to know what is happening
in the company
One solution for better Management
For cycle time reduction
To achieve cost control & low working capital
To marry latest technologies
To reduce the geographical gaps
To satisfy the customers with high expectations
To be Competitive & for survival
http://www.open-source-erp-site.com
6. ERP - Definition
“Software solution that addresses the
Enterprise needs, taking a process view of the
overall organization to meet the goals, by tightly
integrating all functions and under a common
software platform”
OR
Firm wide information systems that integrate
key business processes so that information
can flow freely between different parts of the
firm.
http://www.open-source-erp-site.com
7. Evolution of ERP
1960’s - Systems Just for Inventory Control
1970’s - MRP – Material Requirement Planning
(Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgmt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
http://www.open-source-erp-site.com
8. ERP – Expectations
Integrating all the functions Ex: Land line bill
payment, college mgmt with attendance system,
library system.
Integrating the systems running in all the
locations
Transparency of information using a single
data source across the organization
Software must be responsive
Modular(divided into well defined tasks)
Flexible(user friendly)
Easy to add functionalities(but not begin
again)
Provide growth path(directions for next
implementations)
http://www.open-source-erp-site.com
9. TRADITIONAL VIEW OF SYSTEMS (F. 2.15)
Busine ss Functions
Mark e ting and Hum an
Manufacturing Accounting Finance
Sale s Re source s
O rg a n iza t io n a l
O rg a n iza t io n a l
B o u n da rie s
B o u n da rie s
Busine ss Busine ss Busine ss Busine ss Busine ss
Proce sse s Proce sse s Proce sse s Proce sse s Proce sse s
Human
Manufacturing Accounting Finance Mark e ting and
Res ources
Syste m s Syste m s Syste m s Sale s Syste m s S ys tems
Ve ndors Inform ation Syste m s Custom e rs
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10. ENTERPRISE SYSTEMS (F. 2.16)
Man u factu rin g A ccou n tin g
En te rpris e S ys te m
O rgan ization al
O rgan ization al
Bu s in e s s Proce s s
Bou n darie s
Bou n darie s
Bu s in e s s Proce s s
V e n dors Bu s in e s s Proce s s C u s tom e rs
En te rpris e -wide bu s in e s s
proce s s e s
Hu m an
S ale s an d Fin an ce
R e s ou rce s
Mark e tin g
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11. EXTENDED ENTERPRISES
Extended Enterprises: Networks linking systems
of multiple firms in an industry. Also called
extended enterprises.
Vertical industrial networks :Networks for
integrating the operations of a firm with its
suppliers.
Horizontal industrial networks: Networks for
linking firms across an entire industry.
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12. INDUSTRIAL NETWORKS (F. 2.17)
Horizon tal in du s trial n e twork
F irms F ir m F ir m F ir m F ir m
in a s in g le 1 2 3 4
in d u s t ry
Firm value c hains and enterprise system s
Industry
value
Industrial Netw orks
c hain
Firm s in F ir m S u p p lie S u p p lie S u p p lie
c om plem entary r r r
1
1 2 3
business
V e rtical in du s trial n e twork
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13. ERP MODULES
ERP Solutions are available on Unix and
Windows NT.
The ERP Solution is modular in structure. A
typical ERP package solution has following
modules:
1.Sales, Marketing, Distribution
2.Manufacturing
3.Stores Management
4. Finance and Accounting
5. Personnel
6. Maintenance
7. Purchase, Inventory
14. ERP FEATURES
Security authorization
Referencing responsibility
Implementation of business rules
Security Authorization :
Security sys of ERP is around OS Security with
some additional features. Controlled access to use
and update operation. Authorization is for ensuring
that the transaction is completed as per rules. Ex.
Purchase Order. Price and
discount, terms, purchaser order. 3 levels of users.
No limit on no. of levels
15. ERP FEATURES
Referencing : is provided for tracking the
chain of events of monitoring, progress
checking and control.
Ex. Status of customer order. This feature
links the
Work order refers to Customer order
Delivery note refers to Work order
Bill refers to delivery note and customer
order.
16. ERP FEATURES
Implementation of Business Rules:
Rules and responsibilities allocation are
precisely met by ERP
Very fast in execution ex: email to issue
memos, reminders. Supporting tech is EDI,
through this it can directly transact with
customer or vendor.
ERP is user friendly, meets changing needs
(not fixed)
User can define the events, alert and schedule
them at his choice. (about timings)
The events alerts are triggered by the DB
inserts and updates.
Multiple actions can be performed. Ex: an item
17. ERP FEATURES
Some more additional features:
Drill down and Context Sensitive features
Drill down: Helps to run through the sys
and identify the weak spot for action and
control.
Ex: Sales manager viewing the sales by
region by product line. To know
seasonality of business. Can use the info
the way he wants and judge. Multi
directional to analyze critical business
info
18. ERP FEATURES
Context Sensitive : Provides an access to
help library which can be used by user
just by calling help for
info, guidance, understanding of term or
process or formats. So user friendly.
20. ENTERPRISE MANAGEMENT SYSTEM
Integration of following Systems:
Enterprise Resource Planning
Supply Chain Mgmt
Customer Relationships Mgmt
21. BENEFITS AND CHALLENGES OF
ENTERPRISE SYSTEMS
Benefits
Firm structure and organization: One Organization
Management: Firm wide Knowledge-based
Management Processes
Technology: Unified Platform
Business: More Efficient Operations and Customer-
driven Business Processes
Challenges
Threatening Implementation
High Up-front Costs and Future Benefits
Inflexibility between user skills and software
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